Do good customers buy from bad sales people? How come there are so many really bad sales people making money in this world when the professional guys are finding life hard?
If you’re the CEO and wondering why that difficult, unsociable, lazy, good for nothing rep makes more money than you do? Or if you’re one of the good guys, working hard at professional selling, but bemused and annoyed to watch really bad sales people being more successful? You’re in good company. There are a lot of professional people upset by the same injustices.
But if you think about it, the reasons aren’t hard to find. Bad sales people can be successful whenever the customer has no choice in buying and the Rep doesn’t care about customer experience. The success is built into the relationship between the customer and the product. Either the client has no choice about buying, or about who to buy from. And most often they’re working for businesses which don’t care what the customer thinks, either.
Bad sales people make good numbers when they work for brand leaders – when the customers come knocking on the door pleading for some attention. High performance cars is a really good example – did you ever try to buy a Ferrari or a Porsche? Electronics and electrical goods is another. These days business banking is the same, (although those bankers really don’t want your business).
But the best example I can think of is Enterprise Software.
In the Enterprise Software business product selection is often made by people who have no idea what they’re deciding on. They’ll choose their software based on what consultants or regulators, or their friends recommend. And in big companies that’s most often SAP. Imagine having to buy SAP licenses when the board has decided that’s the only software good enough. The sales guy doesn’t have to be very good, or work very hard, does s/he? The buyer is going to pay top $$$$$ and accept being just another license.
A better example, but still in the Enterprise Software business was my erstwhile colleague. Nick. We worked for what had been the preferred ERP software vendor for IBM mini computers – System 36, System 38, and AS400. They were the most popular business machine and all the big manufacturers bought them, and the software sort of went along for the ride. In previous years the sales guys didn’t have to be any good to pick up vast commissions – just lucky in the allocation of accounts.
In the mid 90′s the ERP business went through a trough. All the new business sales guys left for richer pickings, and Nick stayed on quietly picking up all their accounts, but not making any money. Come 1998 the worm turned.
You may remember the Millenium Bug – the theory the world would come to an end on Jan 1 2000, when all the computers would reset their clocks to Jan 1 1900. As it happens the problem never showed but Nick’s accounts couldn’t anticipate that. Between January 1997 and December 1998 Nick’s entire customer base upgraded to the latest Y2000 compliant version.
And they all paid absolute top $$$, in fact more in some cases.
Nick wasn’t any sort of salesman – good or bad. In fact nobody else would ever have given him a job in sales. He should have been an actuary or something – perfectly pleasant, highly intelligent, and as warm as frozen cod. He didn’t care what the customer thought, didn’t have any kind of process, wouldn’t make social or service calls. When the customer called about the upgrade Nick simply sent her a contract to sign, and it was always $millions – no discount and cash up front.
He made more money than I’ve ever dreamed of. And he was an absolute hero with the management, basically keeping the company in business with his cash flow.
So my recommendation is, to be really successful in sales you need to get a job like Nick’s and forget about being a great salesman.
I’ve tried to find one of those for 20 years, but unfortunately nobody would offer me one
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{ 4 comments }
Peter thanks for stopping by and taking the time to comment. I absolutely agree with you the right time is infinitely more important than ability or effort. I was out of the ERP game after 2000 but really feel for guys like you who were in it.
Hi Steven, I’ve been in the ERP selling in the 2000s and believe me – the competitions was the toughest possible. So, I think also the right moment is important.
Hi Adam – thanks for stopping by and taking the trouble to comment.
I’m definitely still looking for one of those jobs but not holding my breath. When I come across it you’ll be the first I tell.
Steve
Loved the article Steven. Keep me in mind if you ever find one of those jobs.
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